In many optical local area networks (LAN) and optical backplanes that have a bus-type architecture, an optical repeater receives and combines optical signals from optical transmitters in system nodes, as well as amplifies and individually retransmits signals to optical receivers in the system nodes. FIG. 1 illustrates such a prior art optical transmission system. Nodes 106 through 110 transmit and receive optical signals to and from optical repeater 100 and optical fibers 130 through 139. Specifically, optical repeater 100 receives and combines optical signals via optical fibers 135 through 139 and redistributes these optical signals via optical fibers 130 through 134. Optical combiner 115 receives and combines the optical signals; whereupon components 116, 117, and 118 electrically process the combined signal. Optical unit 123 then converts the combined electrical signals to an optical signal and transfers it to optical splitter 124 via optical link 140. Two problems exist due to the fact that optical unit 123 is separate from optical splitter 124. The first problem is the loss of optical energy due to the interconnections of optical splitter 124 and optical unit 123 to optical link 140 by light reflections in the air dielectric interfaces at the interconnections. The second problem is the cost of providing these optical connections.